Key facts
- Paradigm has raised $1.2 billion for its third venture fund.
- The fund will focus on 'technical frontier' startups, including AI and robotics.
- The firm will continue to invest in cryptocurrency and financial system innovation.
- Previous investments include drone delivery company Zipline and space startup True Anomaly.
- Paradigm was founded in 2018 by Matt Huang and Fred Ehrsam.
Crypto venture capital firm Paradigm has announced the successful closure of its third venture fund, raising $1.2 billion. This new fund marks an expansion of the firm's investment strategy beyond its cryptocurrency origins to encompass emerging technologies such as artificial intelligence and robotics.
According to Paradigm's founder Matt Huang, the firm will target startups at the "technical frontier." While AI and robotics are now priorities, Paradigm stated it will continue to invest in the cryptocurrency space, focusing on innovations that advance markets and the financial system. The firm also mentioned ongoing research and development in areas like blockchain tools, agent tools, and security collaborations, including a project with OpenAI.
In an interview with Bloomberg, managing partner Alana Palmedo highlighted the significant developments in AI and robotics as a key driver for the expanded focus. Paradigm's Fund III has already made initial investments in companies such as drone delivery service Zipline and space startup True Anomaly.
Founded in 2018 by Matt Huang, a former partner at Sequoia Capital, and Fred Ehrsam, co-founder of Coinbase, Paradigm had initially filed to raise the fund earlier this year. The final fund size of $1.2 billion is slightly below the $1.5 billion the firm had reportedly sought in February.